Govt signs US$10B steel deal

Under the agreement, Essar will establish an iron and steel complex at the Point Lisas Industrial Estate that will consist of four plants. These include a pellet plant, hot briquetted iron (HBI) plant, steel slab and hot rolled coils plant. The project will generate employment for 5,000 persons during the construction phase, and 1,400 persons on completion. Another 6,000 persons will be indirectly employed as a result of the project. Manning first made reference to the project in his September 28 Budget presentation in the House of Representatives.

Addressing a signing ceremony between NEC and Essar Steel Caribbean Ltd (ESCL) at the Hilton Trinidad on Monday night, the Prime Minister said the agreement opens up a host of new economic opportunities. Manning said Essar brought with it state-of-the-art technology and a whole new range of steel products, including steel components for automobile manufacture. The Prime Minister also indicated that in the context of industrial development, Government was actively pursuing the possibility of constructing additional ports in TT.

Manning left TT yesterday for Caricom Heads of Government and Caricom-Cuba summits in Barbados. Public Administration and Information Minister Dr Lenny Saith has been appointed to act as prime minister until Manning returns home tomorrow.

ESCL managing director PR Dhariwal said the agreement was an historic one, as it heralds Essar’s arrival "at the gateway of the Americas" in TT. He said while Essar’s initial discussions in July involved conducting a study for the establishment of an HBI plant at Point Lisas, based on availability of natural gas at a competitive price, Essar has since decided to establish upstream and downstream industries in TT. Dhariwal noted Manning’s reference to the project in his 2005/2006 Budget presentation, and pledged Essar’s commitment to the highest standards of safety, health, the environment and corporate governance while it operates in TT. He said Essar will become "one of the humble contributors" to Government’s plan to transform TT into a developed nation before 2020. The Essar Group of Companies is one of the largest corporate enterprises in India with businesses spanning core and service sectors of steel, oil and gas, power, telecommunications, shipping and construction. The Essar Group has an asset base of more than US$4.5 billion.